|
The Treasury Department\'s plan to purchase hundreds of billions of dollars of problem mortgage assets from financial institutions should give the federal government the maximum leverage to restructure bad loans and prevent foreclosures, according to House Financial Services Committee Chairman Barney Frank, D-Mass.
We are intent on writing a bill that gives us the power to do the adjustments, Rep. Frank said at a foreclosure conference sponsored by AARP. He noted that the government now controls Fannie Mae and Freddie Mac and said he wants the mortgage giants to coordinate their loan restructuring efforts with a new Resolution Trust Corp.-like entity the Treasury is proposing.
We should now be able to substantially reduce foreclosures, he said. House and Senate banking committee leaders will work with Treasury officials over the weekend to craft legislation to form a mortgage RTC. Chairman Frank\'s committee plans to hold a hearing on the bill Wednesday. |
|
|